❋ Cheerleader for the SAFE Board of Directors, or advocate for all SAFE members and guardian of the laws of California?
✅ If you've been following this sad saga for a while you know that: The California Department of Financial Protection and Innovation (DFPI) has final decision authority on the the SAFE Credit Union Board's proposal to merge with Boeing Employees Credit Union of Washington State. But, you may have missed the key point!
✔ California law states that a majority of all SAFE members must vote in favor of the merger proposal for it to be approved. If a majority of all 245,000 SAFE members do not vote in favor of merger, the merger is not approved! [Got that?]
✅ End of story? Not quite! Any final decision authority by DFPI occurs only after the legally required vote by all the members of SAFE CU. DFPI does not approve a merger proposal in advance of a member vote, although the SAFE Board may seek to imply that it does. [Same sleight of hand SAFE used with that phrase "definitive agreement"!]
✔ So, DFPI by California law may overrule a vote of disapproval by the majority of SAFE members!
😎 Can you think of any reason for DFPI to cheerlead on behalf of the SAFE Board over the objections of a majority - 122,500+ - of SAFE member-owners?
False. They cannot overrule a majority no vote from all members. They can approve the merger even without a majority member yes vote under certain circumstances, including a majority yes vote amount voters that is less than the majority of members.
ReplyDelete5:06pm Don't agree, but thanks for adding that twist.
ReplyDeleteIf you're right, what "% less than a majority" does DFPI use to override the negative vote by the members?
45%? 40%? 25%? 15%? 5%? 1%?
What's the standard DFPI uses to overrule the SAFE members?
Look forward to your answer... and where you found it in the regs or rules.
Update! Troll can't answer... or won't. Good sign for SAFE members! Better to ask DFPI... they will be on the record, not anonymous; will be accountable, rather than loosey-goosey; will be inteliigent, rather than not...
DeleteBack at home. Today SECU filled paperwork to register South Eastern Credit Union trademark. Apparently merger with a couple smaller credit unions in Virginia and South Carolina is in the works. Buckle up!
ReplyDeleteTroll pot stirring! Proof most often difficult to find.
DeleteExample of "TDS" - Troll Disfunctional Syndrome?